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China's stocks rise Thursday

China's stocks rise Thursday

Write: Iphigenia [2011-11-04]

Chinese stocks closed higher after data released Thursday showed that the country's non-manufacturing growth slowed in October.

The Purchasing Managers Index (PMI) of the country's non-manufacturing sector, a key economic indicator, fell to 57.7 percent in October from 59.3 percent a month earlier, the China Federation of Logistics and Purchasing (CFLP) said.

The Shanghai Composite Index edged up 0.16 percent, or 3.98 points, to close at 2,508.09.

The Shenzhen Component Index rose 0.4 percent, or 42.37 points, to finish at 10,624.12.

Combined turnover stood at 272.1 billion yuan (42.92 billion U.S. dollars), up from 201.43 billion yuan the previous trading day.

Gainers outnumbered losers 601 to 296 in Shanghai, and 796 to 533 in Shenzhen.

The CFLP said on Tuesday the country's manufacturing PMI dropped to 50.4 percent, down 0.8 percentage point from September.

China's stocks climbed on speculation that the government will adopt measures to boost the economy after the CFLP reported declines in both manufacturing and non-manufacturing PMIs.

China Life led advances for insurers. The company gained 2.97 percent to close at 18.04 yuan per share, while Ping An Insurance, the country's second largest insurer, climbed 0.75 percent.

Steel shares rallied Thursday with the entire board up 1.18 percent. Henan Hengxing Science and Technology Co. rose 2.34 percent to close at 9.18 yuan per share, while Shandong Qixing Iron Tower Co. increased by the 10-percent daily limit to reach 11.5 yuan.

Bucking the trend, property shares posted lackluster performances, with China Vanke, the biggest developer by market value, down 1.77 percent to close at 7.76 yuan per share.